When it comes to having their direct mail materials printed and shipped, every nonprofit is looking for vendors who can provide the highest quality at the lowest price, and can produce the package on schedule. But finding those vendors can be extremely difficult if you don’t know the ins and outs of direct mail production. Read more...
A client of LDMI once told us that he was looking around the room during a Board meeting and an important realization suddenly struck him: This group of men and women — who have donated and helped raise tens of thousands of dollars for his mission — were all introduced to his nonprofit through direct mail. Major donors are one of the pillars of any nonprofit organization’s financial framework. Very often, major donors become important members of your organizational family, offering advice, hands on support, and a web of important contacts. But one of the most common questions nonprofits struggle with is, “How do we find more major donors?” The answer? Direct mail. The metrics for what constitutes a “major donor” varies across nonprofits, but a good place to start is with donors who have given a single $1,000 or more gift to your cause. Blackbaud’s data and analytics division, Target Analytics, reviewed giving patterns for more than 5 million donors to around 100 different nonprofit organizations to identify the factors influencing their first $1,000 gift to a nonprofit. According to their findings, “[H]ow donors made their first gift and the number of years they had been giving had a significant influence on when they made their first $1,000 donation.” Looking at the origins of the first gifts of these future major donors, almost half, 48%, made their first gift through direct mail. A case study of one nonprofit recently conducted by Analytical Ones found “55% of their $1,000+ donors” were acquired through their direct mail acquisition mailings. Going back a few years, the same group observed in a separate study that one-in-four first-time gifts from $1,000-$2,500 donors were through traditional direct mail acquisition, and one-in-six first-time gifts from $2,500+ donors. Analytic Ones summed up their findings stating: “Think of it another way, take away direct mail acquisition and a significant chunk of your future large donors will also go away.” These numbers shouldn’t be very surprising. Direct mail has been consistent in its ability to convince people to donate large sums of money to nonprofits for decades. As LDMI President Mike Lawrence put it: “One reason for this is that a well-crafted direct mail package is a communication that, in great detail, will give an interested recipient all the information they need about an appeal. It will tell them how the money will be used, it will allay their fears that maybe the money doesn't really go to the intended cause, it will make it easy for them to become a contributor or to repeat as a contributor to this cause. “The fact is, people like to get mail that they're interested in. They like to read about subject matters that they're interested in. An overwhelming number of non-profit contributors are above retirement age. And most retired people who are 65 or older like to get mail. And because they've done a good job of planning for their retirement, they have enough money to be able to send a non-profit $50 or $100.” Or $1,000, $2,500, $5,000 or even more! The above findings are backed up by LDMI’s 30 years of working in nonprofit fundraising. Major donors don’t just fall out of the sky. Most of them are sitting at home reading your direct mail — just waiting to be tapped for a big gift. So if your nonprofit is looking for more major donors, here are a few key steps you can take to get started: Create a robust and dynamic direct mail program. You can learn more about running a direct mail program by clicking here. [not sure what Sean was intending to link to here.] Use direct mail as a prospecting tool. Aside from ensuring your organization’s growth and sustainability, it’s also extremely important in finding major donors. And finally: Analyze your data and target donors for major gifts. The potential major donors in your database may be waiting for a major-giving direct mail solicitation, or even a phone call. For a Complimentary Fundraising Analysis, please click on the icon below:    
Recently, I attended the Direct Marketing Association of Washington’s (DMAW) “Lunch & Learn – The Retention Roadmap: The Guide to Converting, Retaining and Reactivating More Donors.” Caity Carver, the CEO of DonorTrends, and Ben Miller, the Chief Analytic Officer of Donor Trends combined their nearly 40 years in the industry to provide some extremely valuable insight for nonprofits on the importance of retaining donors. In 2016, an average of 99 donors were lost for every donor acquired throughout the direct marketing industry. Carver and Miller stressed over and over again that nonprofit organizations MUST routinely, even monthly, measure their: Overall donor retention rates, Repeat donor retention rates, and New donor retention rates. Metrics that are not measured cannot be moved, so every nonprofit should be measuring those metrics in order to improve them. Nonprofit organizations should also remember to benchmark only against their own retention rates, not industry retention rates. If you measure against industry rates, the data will likely be skewed. Reviewing this data will help nonprofits to know roughly how many donors they can expect to lose and how many they can expect to reactivate during the year. As part of the evaluation process, nonprofits should determine how much they are willing to spend to convert a donor, retain a donor, and reactivate a lapsed donor. Here is a short list of “Do’s and Dont’s” when measuring and improving donor retention rates: DON’T try to move retention without measuring it. DON’T set a goal and forget it later. DON’T measure retention only once a year. DO pick up the phone and connect with your donors. DO try and grow your monthly giving file. DO have superior donor service. DO properly identify your target market through thoughtfully examining your data. And last but not least, DO practice smart donor investment and selection.   For a Complimentary Fundraising Analysis, click on the icon below and fill out the form. LDMI will perform a thorough analysis of your fundraising efforts, at no charge and with no obligation.  
Adam Cassandra is our Creative Director at Lawrence Direct Marketing, Inc. Recently, he was featured in the Direct Marketing Association of Washington (DMAW) monthly newsletter Marketing AdVents. The piece is a short profile of Adam that discusses how he got involved in direct marketing, the importance of challenging yourself as a writer, and more. Check out the interview from the June 2017 Marketing AdVents below: Read more...

Page 5 of 26

Featured Testimonial

Featured Testimonial

"I don't know how many millions of dollars LDMI has raised for the Media Research Center, but I do know why this firm has been... Read more...

Right - Twitter Feed

LawDirectMktng So blessed to have been able to celebrate 170 years of Vincentians in Germantown and around the world with the… https://t.co/ALYmwnJJ3X
LawDirectMktng RT @lisasargent2: Put the finishing touches on two integrated donor newsletter projects this month... 5 channels incl direct mail, Twitter,…

       

Back to top

Powered By

Powered By WebKenner